United Capital increases profit by 15% to N4.97bn …Declares N0.50 dividend per share
United Capital Plc on the Nigerian Stock Exchange (NSE) on Tuesday announced 15 per cent Year-on-Year increase in profit to N4.97 billion in 2019 audited financial statement from N4.34billion reported in 2018.
The group’s profit before tax also increased by 20 per cent to N4.95billion in 2019 compared to N6.22 billion reported in 2018.
The directors of United capital proposed a dividend of N0.50 per share, amounting to a total of N3billion dividend to be paid to shareholders upon approval of members at the forthcoming Annual General Meeting.
Also from the income statement, revenue dropped by seven per cent to N8.59 billion from N9.26 billion reported in 2018. The company attributed the decline in revenue to a drop in investment income, net trading income and other income.
“This decline is attributable to low economic activities in the capital and money market. However, the group was able to turn in a three per cent year-on-year increase in fees and commission income which effectively reduced the impact of the decline in gross earnings,” the company said in a statement.
United capita’s total assets thus improved by 1.2 per cent to N150.46 billion compared to N148,70 billion reported in 2018 as total liabilities decline by 1.5 per cent to N130.88billion compared to N132.86 billion reported in 2018 financial year.
The company explained that the group’s total assets increased by 1.2 per cent majorly driven by a seven per cent surge in the group’s investment in financial assets as well as a four per cent increase in trade & other receivables.
However, shareholders’ funds gained 23.7 per cent to N19.59billion from N15.83 billion reported in 2018.
The group CEO, United Capital plc, Mr Peter Ashade in a statement said, “in spite of the challenging operating environment that was experienced in 2019, United capital group have been able to consistently improve in its performance recording a 15 per cent increase in profit after tax and earnings per share.
“This increase was driven majorly by the growth in our net interest margin, fees and commission as well as efficient tax management strategy. We expect an appreciable growth in our revenue as we roll out our various strategic initiatives for the year 2020. “Although, the revenue from investment income, which is made up of income from the fixed deposit and investment securities, reduced during the year under review, as a result of the persistent decline in interest rate experienced in 2019, we recorded an impressive performance in our businesses.”
